pc
nid 94392
Aug 03, 2026
ataylor@vixio.com
US Track 1
Federal Deposit Insurance Corporation
financial services
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1800 charsFederal Deposit Insurance Corporation Proposes Increased Lending Thresholds for Insiders
On July 31, 2026, the Federal Deposit Insurance Corporation (FDIC) released a notice of proposed rulemaking seeking public comment on adjustments to lending thresholds for executive officers and other insiders of FDIC-supervised institutions.
The proposed rule would increase certain dollar-based thresholds and establish an indexing methodology to align the FDIC's requirements with those proposed by the Board of Governors of the Federal Reserve (FRB) under Regulation O of the Federal Reserve Act. Specifically, the FDIC proposes to increase the maximum amount of credit an FDIC-supervised institution may extend to one executive officer, for purposes other than those specifically authorized by statute, from $100,000 to $400,000. The proposal also raises the maximum amount of credit an institution may extend to one insider, with any aggregate lending beyond this limit requiring board of directors approval, from $500,000 to $2,000,000. The FDIC would establish an indexing methodology to automatically adjust these thresholds every five years to reflect cumulative changes in economic growth and inflation since the prior adjustment. The proposal also simplifies the method for determining applicable lending limits for a given institution.
The FDIC said these changes will reduce compliance burden on FDIC-supervised institutions, as existing thresholds have become increasingly restrictive over time. Aligning thresholds with the FRB's proposed standards will standardize compliance requirements and eliminate disparate treatment between FDIC-supervised institutions and other insured depository institutions.
The comment period closes 60 days after publication in the Federal Register. Comments can be submitted through the Federal Register notice referenced in the FDIC's announcement.
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2214 charsUS Federal Deposit Insurance Corporation Proposes Adjustments to Insider Lending Thresholds
On July 31, 2026, the Federal Deposit Insurance Corporation (FDIC) published a notice of proposed rulemaking that would adjust certain quantitative thresholds for extensions of credit to executive officers, directors, principal shareholders, and their related interests (collectively, insiders) of FDIC-supervised institutions. The proposal would update thresholds under the Federal Reserve Act , which restrict lending to insiders, to account for economic growth and inflation. The proposed changes would align FDIC thresholds with those recently proposed by the Board of Governors of the Federal Reserve under Regulation O .
Key provisions of the proposed rule include:
Increased lending thresholds: The proposal would increase the maximum amount of credit that an FDIC-supervised institution may extend to one of its executive officers for purposes other than those specifically authorized by statute (e.g., residential mortgages or education loans) from $100,000 to $400,000. It would also increase the maximum amount of credit that an institution may extend to any insider without prior board approval from $500,000 to $2m, with any aggregate lending beyond this limit requiring approval by a majority of disinterested board members.
Indexing methodology: The proposal would establish a five-year indexing methodology to automatically adjust the thresholds using nominal gross domestic product, ensuring they keep pace with changing economic conditions. The FDIC would publish updated thresholds every five years, rounded to simplify compliance. No adjustment would be made if nominal GDP declined during the intervening period.
Streamlined calculation: The proposal would simplify the method for determining the applicable lending limit for a given institution by eliminating the three-pronged approach (minimum threshold, sliding scale, and maximum threshold) in favor of a two-pronged approach using a percentage of capital and a dollar-based maximum.
The FDIC estimates that up to 1,457 FDIC-supervised institutions could be directly affected by the proposed changes. Comments on the proposal are due 60 days after publication in the Federal Register. The proposal is available on the FDIC's website.